Iron ore majors lift as futures index surges on Chinese megadam plans
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The news: Iron ore majors gained in afternoon trade as the futures index for the commodity surged on higher demand prospects after Chinese Premier Li Qiang announced that construction on the world’s largest hydropower dam had begun.
The numbers: Shares in BHP erased earlier losses, lifting 0.3% to $40.42 at 1:26pm AEST.
Fortescue shares were up 1.6% to $17.26 and Rio Tinto shares up 1.7% to $115.05.
The futures index for the key steel-making ingredient surged by 3.2% to USD103.95 ($159.78) on the Singapore Exchange. This is the highest level since February 2025.
The context: Chinese demand for steel is set to spike following Qiang’s announcement on Saturday. The estimated $257 billion hydroelectric dam, located along the Yarlung Zangbo river in Tibet, will consist of five cascade hydropower stations – where the outflow of one station flows into the next.
The mega project has raised concerns in India and Bangladesh about downstream impact on water supply. Chinese authorities claim the project will not have a major impact on the environment or downstream water supply.
The sources: Bloomberg, Reuters, Xinhua News Agency
